Malkin: Obama's Tax Evaders of the Year

By Michelle MalkinJanuary 2, 2013 6:55 am

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President Obama will kick off the new year the same way that he kicked off the old year: by demanding that the wealthy pay their "fair share" in taxes. But while millions of small-business owners, struggling entrepreneurs, inventors and investors brace for a double whammy of fiscal cliff tax hikes and new Obamacare taxes, the class-warrior in chief's richest pals are getting a pass.

It's a Golden Pass for liberal millionaires and billionaires who support higher Obama taxes for everyone but themselves. Meet the Democratic tax evaders of the year.

In December, Google's Netherlands subsidiary disclosed in a tax filing that it had shifted nearly $10 billion in revenues to a Bermuda shell company. That's "almost double the total from three years before," according to Bloomberg News. In response to criticism, Google defended the scheme as a legal response to government incentives. "It's called capitalism," Schmidt snarked defiantly.

Wonder what all of Obama's operatives and media lapdogs who bashed evil, selfish Republican offshore tax havens have to say about that? Cue crickets chirping.

-- The Washington Post. Speaking of media lapdogs, this newspaper sanctimoniously supported Obama for president and singled out his support for "revenue (tax) increases." Its endorsement editorial castigated Mitt Romney for embracing an America "in which an ever-greater share of the nation's wealth resides with the nation's wealthy, at a time when inequality already is growing."

The privileged wealthy barons at The Washington Post, however, increased that inequality at the end of the year when they joined a growing number of companies who are giving 2013 dividends in 2012 to protect investors from paying higher Obama taxes on dividend income. It's "proof positive," my friend and guest-blogger Doug Powers noted, "that no matter what happens in the negotiations, the country is definitely going off the irony cliff."

Bonus irony: The $70 million year-end dividend payment will be a windfall for other "higher taxes for thee, but not for me" Obama supporters, including donor Warren Buffett's firm Berkshire Hathaway. According to The Associated Press, "Berkshire is its largest shareholder, with an estimated 1.7 million shares, which means it could get a roughly $17 million dividend payment."

-- Costco. The mega-retailer's co-founder, Jim Sinegal, is a lifelong Democrat and top Obama fundraiser. He crusaded aggressively for Obamacare and sent out a campaign dispatch defending his candidate from criticism over his "you didn't build that remarks." But while Sinegal purported to speak for beleaguered small-business owners, his company was availing itself of rarified tax avoidance strategies. Like The Washington Post, the Costco board of directors voted to pay special $7 per share year-end dividends to avoid higher taxes. In addition, Costco will borrow $3.5 billion to finance the payout, according to The Wall Street Journal. Higher taxes, more debt. They built that.

-- Facebook. The social networking giant's founder, Mark Zuckerberg, told Obama in 2011 at a town hall forum that he was "cool" with paying higher taxes. But neither Zuckerberg nor his many Facebook execs are actually down with following through. Co-founder Eduardo Saverin renounced his American citizenship in a blindingly obvious bid to evade nearly $70 million in taxes. In addition, Zuckerberg and a half-dozen Facebook insiders are all skirting hefty estate and gift taxes on their family Facebook shares held in annuity trusts. According to Bloomberg News, the legal maneuver is called a "grantor-retained annuity trust, or GRAT," and the total Facebook tax avoidance sum adds up to at least $200 million. A "cool" $200 million, that is.

-- George Lucas. The billionaire Star Wars director called Obama a "hero" and parroted his candidate's capitalism-bashing rhetoric in a January 2012 interview with PBS dinosaur Charlie Rose. "I do not believe that the rich should be able to buy the government," Lucas lectured. He does, however, believe in shirking higher taxes the one-percenter way. In October, Lucas sold his film company to Disney for a whopping $4 billion in cash and stock to evade anticipated capital gains tax increases and Obamacare Medicare surtaxes on investment income.

-- Andre "Dr. Dre" Young. Forbes magazine named this California gangsta rapper-turned-music industry mogul the highest-paid musician in the world in 2012. He raked in an estimated $100 million, mostly from sales of his Beats headphone company, along with concert revenue. Dre's music electronics company was co-founded with Jimmy Iovine, who also founded Dre's parent record label, Interscope Records. Interscope was funded by "progressive" billionaire Ted Field, heir to the Marshall Field retail empire and one of the nation's biggest Democratic Party donors.

Dre boosted the careers of prominent Obama hip-hop cheerleaders Eminem and 50 Cent. But overseas, he's rolling like a Romney supporter. The rap mogul is now using a County Cork, Ireland, tax haven to protect his global headphones empire subsidiaries and avoid high U.S. corporate tax rates. The Irish Examiner newspaper explained that the elaborate structuring "allows for money to be (channeled) between the separate companies in the form of royalty payments or (license) fees to artificially but legitimately reduce profits as a means of reducing tax liabilities."

No, they can’t. The Italians (at least the ones who “did to Mussolini”) had BALLS! These neutered Republicans and androgynous Democrats have none. Most of the WOMEN in the Democratic party have more than the men and Sarah Palin (in a GOOD sort of way-she’s very pretty) has more than all of them. There’s only a few who aren’t neutered, but you could count them using the fingers of ONE hand (Paul, Rubio, hopefully Cantor, Allen West- but they made sure to get rid of him!)

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Comment by stoney January 2, 2013 @ 9:34 am

Someone should point out the hypocrisy of “Dr. Dre” evading the paying of his “fair share” in a very public way. Since teens, college kids and the hipster d-bag in general flock to his product, it might be a way to get them to snap out of their zombiehood and start paying attention to economic policy.

Perhaps a sit-in at Best Buy or some other electronics retailer that sells his pimp-phones would be a means to some modest media coverage. Better yet, hold a protest at CostCo and get a two-for-one on outrage.

It’s interesting to note that since Obuthead took office four years ago the number of wealthy Americans who have renounced their citizenship to evade taxes has skyrocketed. These people should no longer be able to peddle their garbage here and not be allowed to come back into this country.

@rattlerjake: “It’s interesting to note that since Obuthead took office four years ago the number of wealthy Americans who have renounced their citizenship to evade taxes has skyrocketed.”

Do you have a link or anything to support that statement?

Thanks.

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Comment by stshepherd January 2, 2013 @ 11:12 am

Doesn’t it kind of remind you of when people used to grovel at the totalitarian feet of the King of England for special dispensations, etc.?! That’s EXACTLY what it is! And isn’t that why “we” came over here and had a Revolutionary War!? How is it not a time for such a war now? How?

We certainly live in interesting times. Over 230 years ago, a group saw the injustices and lack of freedoms from living under a Monarchy. These people saw how the rich, powerful, and connected Nobility ruled to benefit only themselves. The Nobility forced taxes and laws, without caring about any resulting hardships. The Nobility played their political games amongst themselves, while living lives of luxury free of taxes and laws they demanded others obey. The serfs, peasants, and commoners could only pay the taxes and obey the laws, suffering while their work made their masters rich and powerful. This group of people 230 years ago started a revolution. Declaring they won’t live under a monarchy. That government will answer to the common man, not the other way around. There will be no Nobility. That all will be equal, and enjoy the rights and freedoms of free men. The governing will be servants of the governed. Today we call that group the Founding Fathers. If they were around today, they’d be sad to see how all their efforts have gone to waste.

So right up to this point…we’re farther down the path to the USSR than to Old England. Hello Oligarchs. It’s also appropriate given the Obama Chicago-style Thugocratic regime.

Our Founders would be very sad to see how far we’ve fallen and we haven’t even really started the free fall yet, though I doubt it’s far off.

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Comment by jeanpowell1 January 2, 2013 @ 1:22 pm

Response to odayterrence: How right you are. It seems that informed Americans today are powerless to do anything to prevent what just happened in Washington. Had the average voter been on the ball 41/2 years ago, we would not have had this situation to deal with today. Those who were informed knew about obama and his past ties, beliefs, etc. With the movie, based on the book,”Obama’s America, 2016,” the entire country could have educated themselves about what it was that ruled us during the previous 4 years. However, there are too many people in this country who didn’t care, as long as they thought they were going to get the “free stuff” promised them by their socialist leader. I’m not sure any of these people are now any more aware/informed than they were 6 months ago. Or care. obama did a great job of vilifying the man who ran against him, and convincing “the great unwashed” of this country that Romney, a fine example of a caring, competent man, didn’t understand them or care about them because he is wealthy. What utter nonsense, but the majority bought it, and they also believed that the Republicans were waging war on women! What a load of garbage…..but b.o. was able to pull it off. Romney was too decent to to fight dirty and inflict the damage/truth needed to win the election. Too bad. We are ALL the losers in this one. The only “winners” are the blind/ignorant takers who still believe this fairy tale. Talk about the “teflon” president….nothing he does sticks to him. He can get away with whatever it is he plans to do to “fundamentally transform” this once-upon-a-time incredible country we lived in.

Well, the RNC gave us McCain, because it was his turn. Then they gave us Romney, because poor Mitt had waited five years for his turn. One has to wonder which guaranteed loser’s turn it will be in 2016. Has anyone any idea how we can wake these people up from their dream world? I’m serious, that was not a rhetorical question. How do we force the RNC to give us a meaningful chance to correct things? I’m not a Republican, but I agree with others who say there still isn’t a strong enough third party to try that route. I’ll still send my message in local elections and in primaries, but for the general election, realistically, either a Democrat or a Republican will win, for the foreseeable future.

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Comment by truckman January 2, 2013 @ 4:33 pm

I sure wish America hadn’t been so afraid of the Presidential Candidates who really COULD have actually DONE something to make America a better place. Sounds like Ron Paul has given up trying to drag America into the light;hopefully Rand will pick up the glove and flog the Liberals soundly with it,and take up Ron’s cause. Believe me-IT’S TIME! There’s a LOT of other Constitutional Conservatives out there(Paul Ryan,Michelle Bachmann,Sarah Palin,I know there’s a lot more I didn’t mention-feel free to fill in my memory gaps.) who could turn this rig around if they worked together and partner with the Tea Party instead of the Dimocrats. The only other way to get back on track would be to jump ship and just go Tea Party,and hope they can gain enough standing to pull off a win next time. Hope didn’t do so well for us in the last two elections though.

Both Ryan and Bachmann voted FOR the fiasco of a bill. So less “conservative” than claimed. That vote WILL come back to bite them in the butts.

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Comment by gymlock January 2, 2013 @ 4:40 pm

Let’s see 60 Minutes do a story on these folks with these facts; and confront the perps with the same ferocious gnarling they use on Republicans. ……….. . yeah, yeah.. I know… ain’t gonna happen. ROFL because it hurts too much to cry.

Maurice Stans of Watergate fame said it best: “When your license renewal comes up, you will need friends in Washington and the cost of such friendship in $25,000.00.” Obama has appointed an Internet Czar and everyone in that business knows the score — contribute or else. Every Texan knew LBJs wife had all the TV stations in Austin and just accepted it as a business cost.

Gee, no surprise the crony capitalists are exempting themselves from the effects of their “bright, shining one”. Talk certainly is cheap; acting in accordance with your words? Not so much.

Then there’s the REST of the story, the ones who have been directly protected with credits, subsidies and also by moving parts (some are LARGE parts) overseas, all with the smug approval of the Community Organizer in Chief, Timmy the Tax Cheat and their merry band of statists.